Households

question 133

Multiple Choice

Households

• A) have no influence on the circular flow in a market economy.
• B) purchase resources in the factor market.
• C) sell goods in the product market.
• D) sell resources in the factor market.

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Definitions:

Raw Materials

Basic materials that are used in the initial stages of production and manufacturing processes.

Invoice

Bill for goods or services provided by the seller to the purchaser.

Bill

A short-term debt instrument issued by a government as a means of borrowing money with a maturity of less than a year.

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.